APPEA Outlines Policy Priorities for the Australian Oil, Gas Industry

APPEA suggested five policy priorities requiring governmental attention, which include:

• fiscal stability
• market-based energy policy
• industry access to resources
• reduction of red and green tapes
• and a viable labor markets that encourage mobility, flexibility and productivity

Australia needs a stable fiscal framework encouraging hydrocarbon exploration and development investments as these projects often have a lifespan of 30–40 years. APPEA noted that changes to the taxation regime over the last five years have been disruptive. They included the tax on condensate production; limiting application of research and development tax arrangements; extending the scope of the Petroleum Resource Rent Tax regime; reducing the scope of the fringe benefit tax exemptions for workers; introduction of a carbon tax not borne by international competitors; and introduction of cash bidding for certain exploration acreage.